Nonprofit expanding its reach on the East Side

Jane Gonzalez, CEO and president of MEDwheels, a medical equipment company, is shown outside her office on the East Side. MEDwheels is the first company to take advantage of all three SAGE programs — a storefront grant, an equity investment and a loan.

Photo: Lisa Krantz /San Antonio Express-News

A local nonprofit has tapped new sources of capital as part of its mission to help businesses grow or relocate to the East Side.

This year, SAGE, San Antonio for Growth on the Eastside, has taken an equity stake in two businesses, has awarded its first-ever loan to one of the companies and continues to award the storefront matching grants it’s been making since 2010.

In a recent move, SAGE invested in two companies through its SAGE Equity Fund — MEDwheels, a medical equipment company, and Chelsea’s Catering & Bar Service. The equity fund is designed for businesses that are expanding or locating on the East Side. It was established last year with a $740,000 grant from the U.S. Department of Health and Human Services Community Economic Development Program.

The SAGE Equity Fund “operates like a venture capital fund, investing in East Side companies to help them grow and add jobs,” SAGE executive director Jackie Gorman said.

In MEDwheels’ case, SAGE made a $50,000 equity investment through its equity fund, and the company agreed to create five new jobs. It plans to hire a pharmacist and technician, along with three more positions.

In addition, MEDwheels will take on a loan of more than $500,000 to consolidate debt and expand. The money comes from the SAGE Grow Eastside Fund. The loan program was developed last year in partnership with the National Development Council’s Grow America Fund and area banks.

“We’re outgrowing the space that we’re in,” MEDwheels CEO and President Jane Gonzalez said. “We’re geared up to expand.”

Earlier this year, MEDwheels received a storefront grant.

MEDwheels “is the first to participate in all three SAGE programs,” Gorman said.

While MEDwheels’ loan under the fund is the first, there were others “that we couldn’t make happen, but not for bad reasons,” Gorman said. “They could get a reasonable (interest) rate from their bank, and that’s what we want.”

SAGE’s equity fund also invested $288,998 in Chelsea’s Catering & Bar Service to give it the capital it needs to open a casual dining restaurant. Tony G’s Soul Food and Southern Cuisine will open in 2016 at 119 Heimer Road and create 30 jobs. Owner Tony Gradney wasn’t available for comment.

The SAGE board liked MEDwheels and Chelsea’s because “both owners had taken a risk and started their business on the East Side without any help. Both of them are doing well, and we felt like both had a good plan,” Gorman said.

Earlier this year, SAGE took a 2 percent, $100,000 equity stake in Indatatech, which provides procurement, logistics and technical services to governmental and commercial clients.

This year, SAGE’s storefront grants totaling $120,000 have gone to 11 East Side businesses. The program awards as much as $10,000 for exterior improvements. The business owner must match the grant dollar-for-dollar.

The Law Office of Arlene M. Gay recently got a storefront grant. Gay said she moved her office to 823 S. Hackberry St. from the near West Side on West Martin St.

“We love being on the East Side,” she said. “Once we got the grant, we worked hard to improve the property.” The structure, a house built in 1919, “was pretty nondescript” and had been vacant for at least 2½ years. Gay had the house painted and added a wrought-iron fence.

“Since our improvements, the owners painted a house across the street,” Gay said. “So I hope this will be an impetus to other people improving their property.”

Lonnie Bain, owner of Big Moe’s Automotive Rebuilders, also recently landed a storefront grant for $7,000. He is moving his business from 5096 Blanco Road to 512 S. W.W. White Road and will modernize the façade at his new location.

Big Moe’s is a rebuilder of starters and alternators “on anything and everything, and big equipment is our specialty. We’ve been trying to get on the East Side because that’s where a lot of growth is going on, especially in my business,” Bain said.

“We want to have a working relationship with the school district in the area and become part of the community. We want to make (the building) nice and have people say, ‘Hey, these people mean business.’”

As SAGE expands its reach, Gorman said she’s excited about the possibilities. “I’m hoping that more people will look to the East Side as a place to locate their business, a place to live and a place to do business.”